Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.

Name: Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Normal costing uses the actual allocation base activity, such as direct labor hours or machine hours, to apply manufacturing overhead costs to jobs, but it uses a predetermined overhead rate rather than the actual overhead costs incurred.

Normal Costing Uses the Actual Allocation Base Activity to Apply